Hi from Michigan

Hello. I am starting out with a flip. Eventually I want to have rental properties. I have a lot of John T. Reed's books, and I like his honest tell it like it is advice.

Edited: 06/26/2010 at 05:26AM

Andrew Alexander

Real Estate Investor · Kalamazoo, MI

40 posts
1 Influence
1 Award

Icon_minipost Jul 02 '08, 05:49 AM

Hi!

Where in Michigan are you?

Edited: 06/26/2010 at 05:26AM

Account Closed

691 posts
24 Influence
2 Awards

Icon_minipost Jul 02 '08, 06:12 PM

Welcome Steve, to Bigger Pockets - may you have some soon! If you want, please etll us how your first deal is going? Thanks and good luck, Mike

Edited: 06/26/2010 at 05:26AM

Steve Might

Real Estate Investor · Fenton, MI

101 posts
294 Influence
1 Award

Icon_minipost Jul 05 '08, 01:23 AM

I live in Fenton, but I grew up in Madison Heights/Warren so i know that area better.

Edited: 06/26/2010 at 05:27AM

Ryan Steele

Real Estate Investor · Chicago, Illinois

957 posts
96 Influence
3 Awards

Icon_minipost Jul 05 '08, 08:29 PM

Steve,

Welcome to the online party that is Bigger Pockets.

So starting with flips? Have you purchased a property yet? If so, where? What type? etc. Would love to know more.

:welcome:

Edited: 06/26/2010 at 05:27AM

Dick Green

Residential Real Estate Broker · Conroe, Texas

1596 posts
1347 Influence
4 Awards

Icon_minipost Jul 05 '08, 10:45 PM

Hi Steve,

Welcome to the group. Looking forward to chatting with you and hearing about your first flip. How are you finding potential properties?

Edited: 06/26/2010 at 05:27AM

Steve Might

Real Estate Investor · Fenton, MI

101 posts
294 Influence
1 Award

Icon_minipost Jul 06 '08, 02:08 AM

The home next door to us went into foreclosure. I really did not know what to do as far as title searches so I waited. Eventually a realtor who specializes in HUD homes and foreclosures took it over. We won on our bid for an amount that we think is below FMV for our area (I hope).

It only needs cosmetic help and so we are going for a fast flip. The property taxes for summer are already over $5k. :cry: I am nervous about this, but it is better than only talking about being a REI.

Edited: 06/26/2010 at 05:27AM

Dick Green

Residential Real Estate Broker · Conroe, Texas

1596 posts
1347 Influence
4 Awards

Icon_minipost Jul 06 '08, 02:30 AM

It's hard to fail with real estate. How's sales in your area? Are you prepared to rent it if necessary? How's rents in the area?

Edited: 06/26/2010 at 05:27AM

Steve Might

Real Estate Investor · Fenton, MI

101 posts
294 Influence
1 Award

Icon_minipost Jul 06 '08, 05:22 AM

The problem out here is high unemployment. People are hesitant to buy. However, the house we are flipping got a LOT of activity at the first asking price. I hope this will repeat itself when we show it at out increased price.

Edited: 06/26/2010 at 05:27AM

Dick Green

Residential Real Estate Broker · Conroe, Texas

1596 posts
1347 Influence
4 Awards

Icon_minipost Jul 06 '08, 09:42 PM

I find that working on a floating margin based on completion of work is a good way to limit financial exposure on a flip. In other words, ask yourself the question......How much would I sell the property for, " AS IS" ? Then continue to adjust the price as work is performed.

This gives you the opportunity to market it right away as well as maybe capture a buyer willing to invest sweat equity.
Also I would suggest that you don't glean the fields. http://www.thefreedictionary.com/glean Make sure it's profitable for the buyer behind you.

Edited: 06/26/2010 at 05:28AM

Jeff Davenport

· crystal lake, Illinois

6 posts

Icon_minipost Oct 15 '08, 12:51 AM

Steve,

Are you looking for properties in Sturgis, MI? Commercial property that comes with a lease.

Jeff

Edited: 06/26/2010 at 06:08AM